Columbus Café & Co continues to expand its footprint in Canada with the recent opening of its 10th location in Montreal and announcing it will open its first Toronto location in early Fall.
Tony Flanz
Tony Flanz, of Think Retail, which consults and represents international, national, and regional retail chains and is part of Columbus Café & Co’s expansion, said the plan is to open at least 20 locations in the next 12 months.
“Ideal spaces are 1,500 square feet and the preference is for corner locations and/or drive-thru opportunities along high streets, as well as super regional malls, open air plazas, train stations, hospitals and airports,” he said.
“We are flexible. We’re happy to look at something a little bit larger. We’re a bit of a chameleon. We can look at anything from a kiosk at 250 square feet plus some seating to 800 square feet grab and go. So we really can be flexible depending on the location.”
Columbus Café & Co in Montreal (Image: Dustin Fuhs)Columbus Café & Co in Montreal (Image: Columbus Café & Co
The first North American café debuted on Mont-Royal Avenue in Montreal in 2020 and already there are 10 locations in and around the city.
The newest is a 2,000-square-foot café at 2020 Robert Bourassa in Montreal, at the foot of a busy office tower owned by Canderel.
Columbus Café & Co will open its first Toronto location, at 283 Adelaide St. W. in the PJ Condos tower. The location is close to 1,700 square feet.
“Toronto was always part of the plans,” said Flanz. “The company has designs to open at least 100 locations in Canada in their first five years of entering the market. So the gradual scale was always to look in Toronto in year three of the program.
“That particular location we collaborated with Urban Reform who had the listing for that space and felt a coffee shop market was very underserved in that area of Toronto, on that street where there’s a lot of QSR restaurants that are very successful. The location has a lot of frontage and a major patio opportunity which we thought we could be very creative and try to animate that corner with our branded elements and we’re very excited about doing so.”
283 Adelaide St. W. in the PJ Condos (Image: Condos.ca)Image: Columbus Café & Co
He said Toronto and Montreal are big areas of focus for expansion. It is also looking at developing more drive-thru locations which is a top priority. It’s also looking to be in financial cores and entertainment districts, hospitals, airports. High traffic walking streets have always been a part of the core business.
Flanz said the company has built a reputation as France’s favourite coffee shop.
It was founded in 1994. The brand grew because of its premium coffee products and varied menu—sandwiches, salads and Buddha bowls, plus an array of quality baked goods and sweet treats—housed in modern inviting spaces where customers can enjoy a quick bite or linger with friends over coffee and a meal.
In 2001, the company opened its first café outside of France—in Brussels—and three decades after its inception, Columbus Café & Co operates more than 200 locations across France and internationally.
“We will partner and align with some charitable entities each time we open markets,” said Flanz. “When we open in Toronto we will look to align with an organization that helps others, that we feel has synergy with our global mission and objectives.”
In a previous interview with Retail Insider, Maxime Mayant, the company’s CEO in Canada, said: “A large food offering to share every moment of the day whether it is lunch, breakfast, or snack . . . Our values are as follows: Live, share and enjoy. We cultivate healthy eating and products and do as much as possible on site. We also cultivate ecology throughout the process, whether for fair trade organic coffee, packaging, rules in branches.”
Austrian crystal brand Swarovski has launched its ‘Instant Wonder’ flagship concept store in Canada with a single location on Bloor Street in Toronto. It is one of a select few stores for the new concept globally with the store replacing a previous Swarovski location that recently closed nearby.
The new 1,900 square foot Instant Wonder Swarovski is located at the Manulife Centre, with a Bloor Street-facing entrance in the space between the main entrance to Eataly and the main entrance to Manulife Centre. It is one of only 27 Instant Wonder stores around the globe according to Swarovski, following the concept’s launch in 2021. Manon Parisien of Aurora Realty Consultants negotiated the lease on behalf of Swarovski. CBRE’s Urban Retail Team represented landlord Manulife including Arlin Markowitz, Alex Edmison, Jackson Turner, Teddy Taggart and Emily Everett.
The Toronto store is highly experiential according to Swarovski. The location “pays homage to the shimmering beauty of crystal” with an interior of “mesmerizing metallic finishes and fluted glass combined with chrome and silk touches throughout.” The store, as with other Instant Wonder flagships, is colour-blocked in blue — various stores globally feature other colours. The experience also includes packages that are wrapped up with signature gross-grain silks and velvets.
Swarovski at Manulife Centre (Image: Dustin Fuhs)Photo: Dustin Fuhs
A collection of octagon display cases on the walls of the store showcase a range of jewellery and other offerings adorned in Austrian crystals, and the store also carries an assortment of accessories, figures and collectables, gifts and other categories displayed throughout.
Kolja Kiofsky
“We are thrilled to continue expanding the footprint of our new retail landscape which will allow customers to explore Swarovski collections in a modern luxury environment,” said Kolja Kiofsky, General Manager, Swarovski North America. “Our newly opened presence on Bloor Street underscores Swarovski’s commitment to our business development and to delivering joyful extravagance to our customers in North America.”
The new Swarovski replaces a former location that shut at 2 Bloor Street West in early 2022. That former location, which operated since 2002, shut along with an adjacent Talbots store so that construction could begin on a new Lululemon flagship that will open early next year at the northwest corner of Yonge and Bloor Streets.
Swarovski at Manulife Centre (Image: Dustin Fuhs)View of Swarovski from the Bloor Street lobby of Manulife Centre. (Photo: Dustin Fuhs)Photo: Dustin Fuhs
Swarovski operates standalone stores across Canada and the brand also wholesales in jewellers nationally. The Manulife Centre Instant Wonder store is expected to be the only one of its kind to open in Canada. Swarovski was founded in 1895 in Austria and the company designs, manufactures and sells a range of crystal, gemstones, Swarovski Created Diamonds and zirconia, jewelry, and accessories, as well as crystal objects and home accessories. The company has about 2,400 stores and 6,700 points of sales in around 140 countries and employs more than 18,000 people.
The Manulife Centre is anchored by a 50,000 square foot Eataly location that opened in late 2019, as well as a Loblaw City Market grocery store, Shoppers Drug Mart, LCBO, Birks, and a new Earls restaurant is currently under construction that will open in the winter. Several smaller retailers also operate in the mixed-use Manulife Centre, including Ron White shoes, Over the Rainbow Jeans, Studio D, Petra Karthaus and others.
There have been plenty of changes nearby in terms of retail, with more to come. Fabricland recently opened a store in the former H&M space at 15 Bloor Street West, and the location could remain open until the site is demolished for a proposed mixed-use tower. Next to that is the construction of an Apple store at 1 Bloor Street West, and across from that will be a new tenant that will replace Nordstrom Rack which shut a couple of weeks ago. Morguard’s properties on the north side of the street, including the Holt Renfrew Centre, will be seeing two new significant Canadian retail tenants while further west along Bloor will be several new luxury retailers that will be opening throughout the remainder of the year. Names include Rolex, Van Cleef & Arpels, Ferragamo, Saint Laurent, Alexander Wang, Bonpoint and others.
Additional Photos from Swarovski at Manulife Centre on Bloor Street
Swarovski at Manulife Centre (Image: Dustin Fuhs)Swarovski at Manulife Centre (Image: Dustin Fuhs)Swarovski at Manulife Centre (Image: Dustin Fuhs)Swarovski at Manulife Centre (Image: Dustin Fuhs)Swarovski at Manulife Centre (Image: Dustin Fuhs)Swarovski at Manulife Centre (Image: Dustin Fuhs)
Healthy Planet, one of Canada’s fastest growing health and wellness retail chains, has opened four new locations in southern Ontario – Toronto, Scarborough, Ajax and London.
Healthy Planet started in 1995 and quickly became one of Canada’s fastest growing, Canadian owned, health and wellness grocery chains with 33 retail stores currently operating.
Muhammad Mohamedy
Muhammad Mohamedy, General Manager of Healthy Planet Canada, said the company’s mission is to help Canadians live healthier every day.
“We are ever expanding our store format with an added range of health and wellness products, including supplements, vitamins, sports nutrition, health foods, organic groceries, bath, beauty, pet supplements, eco-friendly home products and fresh prepared food,” he said.
“We are especially proud to announce the launch of our Healthy Planet Kitchen at the Ajax location, which will offer a chef-inspired menu comprising of soups, salads, sandwiches, wraps, bowls, pizzas, freshly squeezed organic juices, smoothies, breakfast items, baked goods, and snacks. All of our offerings are artfully prepared and assembled from scratch daily.
“Our aim is to make it simple for our customers to prioritize their health and wellness with a menu that is predominantly organic, delicious and exclusive to our kitchen.”
PHOTO: HEALTHY PLANET
The concept began as a small kiosk in a strip mall on Danforth Avenue in Toronto. It then opened its first store at the Parkway Mall in early 1998.
Mohamedy said the company is working on another four locations this year – two new stores and two renovations. A new store should be opening in Richmond Hill in July or August and another store in downtown Toronto at Yonge and Dundas in September and October. The current Oakville location is being renovated to a bigger footprint that should be completed by September.
“We have another six locations signed for next year,” he said.
“Our strategy has always been to go into the markets where there’s not a lot of health food stores available or where there’s not a lot of natural supplements, groceries. We’re going into a lot more of the groceries aspect to it – organic groceries and natural food. That is one area we’ve been really pushing through.
“Now we’re also adding a kitchen. We started that with one location but this year we’re adding three more locations where it’s kind of grab and go food but a healthier version of it. So instead of going to fast food we have natural fast food available.”
Image: Healthy Planet
Mohamedy said a kitchen will be going into the Oakville location as well as an existing store in Mississauga. A kitchen will also be part of the new Yonge and Dundas store and also one in its Etobicoke location.
He said there are plans for more kitchens.
“It won’t be everywhere but where the space allows us to do it we’re going to be adding one in and this is one of our strategies to add that in as there’s a consumer demand for healthier food,” said Mohamedy.
“We’ve done some research on it and people are looking for options other than going to McDonald’s or other major fast food places.”
He said there’s no limit to the company’s expansion plans.
“As long as we’re growing, our sales are good. One of the key things for us is having well-trained staff at our stores – the customer service element. As long as we’re able to keep that mark, we’ll continue to grow,” he said.
Currently the company is concentrated in southern Ontario with a couple of stores in Ottawa. Does the company have plans of going beyond that geography?
“For this year and next year, we don’t have any plans to go outside of Ontario,” said Mohamedy. “But beyond that we’re looking at all the options available. Ontario is the biggest market in Canada so we want to make sure that all areas are covered before we go there. For new areas you need to have a strong team and we’re building towards that right now.”
Mohamedy said the company has realized that today’s consumers are having a hard time making ends meet with inflation on the rise. So the company is aligning its brand with food banks and organizations where it can be part of the community.
“Even though we’re expanding we still want to be involved in every community that we go. So the prices that we put in our stores is also reasonable and at the same time we want to be aligned to the charities,” he said.
Recent research released by Restaurants Canada reveals a 116 per cent increase in bankruptcies for Canadian restaurants compared to 2022, and much of this is due to the unpredictability of running a small business in Canada.
As the Canadian Emergency Business Account (CEBA) loans are nearing their Dec. 31 repayment deadline, a Restaurants Canada survey has found that nearly 20 per cent of restaurants that have yet to reimburse the government will not be able to repay it in part or at all given the state of Canadian foodservice.
The organization believes the number of bankruptcies, and local restaurant closures, will only grow.
“Thousands of small independent operators in our industry are at breaking point as a result of their CEBA debts. That’s why we are calling on the Deputy Prime Minister, Chrystia Freeland to take meaningful action by adopting our CEBA repayment proposal to help ensure their survival,” said Olivier Bourbeau, Vice President, Federal & Québec Affairs.
Queen Anne on Richmond Street in Toronto Shuttered (Image: Dustin Fuhs)
“We are nearing our sector’s summer high season. However, with half of all foodservice companies currently operating at a loss or just breaking even and 80 per cent making less profit today compared to pre-pandemic (2019), many of our members are weighing their options to either remain open and continue incurring further debt, or close their businesses and file for bankruptcy; a decision on CEBA before the summer season is integral to providing small-businesses with predictability.
Olivier Bourbeau
“Not a lot of people know that yes the sales are back from COVID but the profitability is not there. Therefore an average restaurant only makes between two and three per cent pre-tax margin. When we see a lineup in front of a restaurant it’s not because it’s full, it’s because we don’t have enough people to serve – the labour shortage. So we operate at 80 per cent capacity with small, small, thin margins.
“Half of the restaurants, 51 per cent, are breaking even or losing money every day – every day. What we’re proposing is a win win. We want to reimburse. Restaurant owners are entrepreneurs. They are proud. They want to continue to work. They built a business. They just want more time to be able to reimburse.”
Restaurants Canada is calling on the federal government to adopt its CEBA repayment proposal from RC’s 2023 Federal Pre-budget Submission. With only a few weeks until the House of Commons rises for the summer on June 2, and the repayment deadline quickly approaching on Dec. 31, 2023, time is of the essence to address the acute CEBA loan repayment challenges facing restaurants and other small businesses, said the organization.
Restaurants Canada said its CEBA recommendations ask Parliament to provide struggling small businesses with a 36-month payback extension on CEBA loans, with a scale-down model on the forgivable portion. The effective plan will ensure that taxpayer funds are paid back to the government owed while saving thousands of restaurants and other small businesses from being forced to declare bankruptcy in the near future.
For the majority of Canada’s foodservice sector, the pandemic created seismic financial challenges which it is still struggling to recover from. In response, the federal government launched the CEBA program, which gave small businesses, including 83 per cent of table service and 56 per cent of quick-service restaurants, and not-for-profits interest-free loans of up to $60,000, said the organization.
“For many restaurateurs, the December 31st repayment deadline is simply impossible to meet – which reflects the state of our industry as a whole. Post-pandemic operational challenges like inflation, labour shortages and supply chain hurdles are further diminishing the profitability of these businesses and lengthening the sector’s recovery process entirely,” said Bourbeau.
He said its proposal would save thousands of restaurants in Canada and tens of thousands of small businesses in Canada.
According to Restaurants Canada:
Canada’s foodservice industry has hit the 100-billion-dollar mark, yet when adjusted for inflation, in comparison to all other Canadian business sectors, restaurants have experienced a 12 per cent drop in economic activity (GDP) from 2019 to 2022; second last to the arts, entertainment and recreation industry which is down by 19 per cent, and;
Nearly every operational cost is on the rise due to inflation; utilities have increased by six per cent, proteins have increased by nine per cent (beef), 11 per cent (seafood), 13 per cent (chicken), and cooking oil (up 40 per cent), as well as rising labour costs, and restaurateurs have been forced to absorb as much as they can to avoid impacting consumer traffic.
Shuttered Fran’s Restaurant on Front Street (Image: Dustin Fuhs)
The Canadian Federation of Independent Business said 78 per cent of small business owners report that getting extra time to repay their CEBA loan will increase the likelihood of their business’ survival. The CFIB said its data shows 49 per cent of small businesses are still making below normal revenues, with those in hospitality, arts and recreation, retail and social services hit the hardest.
“Many small businesses are trying to repay their COVID-related debt, while facing an onslaught of additional challenges. High interest rates, inflation and labour costs are all making it hard for small businesses to keep their head above water, let alone make any dent in the debt they were forced to take on to survive pandemic restrictions,” said Dan Kelly, CFIB president.
“If the government helped ease their debt burden, small businesses could reinvest the money into employees or back in their business. Otherwise, we may see more business failures as businesses realize they can’t afford to stay open.”
The CFIB said 72 per cent of small businesses need to see CEBA repayment rules extended, with 30 per cent preferring a deferral of one year and 42 per cent preferring two years. It said only 10 per cent of businesses that took on a CEBA loan have been able to repay it entirely, while another 47 per cent say they will be able to repay it by the end of 2023. If the CEBA loan is not repaid by December 31, 2023, small business owners will lose the up to $20,000 forgivable portion and start accruing interest.
The CFIB is calling on the federal government to extend the repayment deadline for the CEBA loan to end of December 2025 or at least end of 2024; consider additional debt forgiveness; and implement an appeal process for CEBA loan recipients that are now deemed ineligible.
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past several days.
French luxury superbrand Louis Vuitton has expanded its presence in the Montreal market with the unveiling of a men’s ready-to-wear concession on the fourth floor of Holt Renfrew Ogilvy. It’s the second men’s concession for Louis Vuitton in Canada, and a women’s space could follow in Montreal according to staff.
The Montreal men’s concession opened on Friday of last week in a central open space on the 40,000 square foot Holt Renfrew Ogilvy men’s floor. Included is a range of clothing as well as footwear, bags and accessories. Some of the pieces are colourful with some hard-to-find pieces on offer.
A women’s ready-to-wear trunk show will be coming to Holt Renfrew Ogilvy in Montreal in August, according to staff at Louis Vuitton, and a women’s concession in the store could follow. Louis Vuitton has had a presence for bags and accessories at Holt Renfrew Ogilvy since its opening in 2019, as well as at the former Ogilvy department store since 1989.
The men’s floor at Holt Renfrew Ogilvy was unveiled in the spring of 2019, featuring a roster of leading luxury brands in concession spaces. Other big names include Gucci, Saint Laurent, Prada, Dior, Brunello Cucinelli and others.
Photo: Craig Patterson Fire map of the 4th floor of Holt Renfrew Ogilvy, showing the new Louis Vuitton men’s concession area.
The Montreal men’s Louis Vuitton concession follows the opening of a Vancouver men’s concession which debuted on the concourse level of Holt Renfrew’s men’s floor in late 2017. A women’s ready-to-wear concession subsequently opened at Holts in Vancouver during the pandemic.
Louis Vuitton menswear is also available at standalone Louis Vuitton flagship stores in Toronto (Bloor Street West and Yorkdale), as well as in Vancouver at the standalone flagship in the Fairmont Hotel Vancouver — the Vancouver location is seeing a renovation and expansion that should be open soon. Louis Vuitton also has standalone stores carrying bags, footwear and accessories in Edmonton and Calgary. The brand is said to be eyeing expanding the Edmonton market with ready-to-wear which would involve growing the existing 4,600 square foot store.
The Montreal market will be getting considerably more Louis Vuitton ready-to-wear next year when the brand opens a standalone flagship location at Royalmount. The 9,150 square foot store, expected to open in August of next year, will become one of the largest in the country for Louis Vuitton and will have a full range of men’s and women’s clothing as well as bags, footwear, accessories and other categories.
Photo: Craig Patterson Photo: Craig Patterson
The brand also operates bag/accessory concessions at Holt Renfrew in Vancouver, Toronto (50 Bloor St. W. and Yorkdale) and at Holt Renfrew Ogilvy in Montreal. Vuitton exited Holts in Edmonton and Calgary several years ago to open standalone stores in those cities.
Louis Vuitton could expand even further in Canada with the possible opening of at store at Oakridge Park in Vancouver, which is the new name for the redeveloped Oakridge Centre which is expected to be completed in either late 2024 or early 2025. Sources said that LVMH has not yet fully committed to the centre but given that Chanel is said to be a confirmed future tenant, other luxury brands are expected to follow.
Canada’s first Louis Vuitton store opened in 1983 in Toronto at 110 Bloor Street West, with a second location, being a concession, opening at Holt Renfrew in Vancouver in 1987. Louis Vuitton opened its first standalone Vancouver store in 1996 at the Fairmont Hotel Vancouver and that location was expanded to about 10,000 square feet in 2010.
In Toronto, Louis Vuitton has had several progressively larger storefronts on Bloor Street — in 2012 the brand vacated its 6,000 square foot space at 111 Bloor Street West for an 18,000 square foot ‘Maison’ space across the street at 150 Bloor. At Yorkdale, as well, Louis Vuitton unveiled a standalone 7,200 square foot comprehensive store in the mall in the fall of 2020, while keeping its 4,000 square foot bag/accessory concession at Holt Renfrew — combined sales between the two locations in the mall are said to be in the $100 million range.
Photo: Craig Patterson
Louis Vuitton recently operated a 1,200 square foot concession at Saks Fifth Avenue in downtown Toronto, which opened in early 2016 and shut at the end of 2021. The brand also had a store in the resort town of Banff, Alberta, from 1996 until its closure in the spring of 2011.
Louis Vuitton is a division of LVMH and has stores and concessions globally. The brand was founded in 1854 by the man of the same name, and has expanded beyond luggage and bags to become a lifestyle brand. Sales are in the billions of dollars annually globally.
The Body Shop at Metropolis at Metrotown (Image: The Body Shop)
The Body Shop North America has appointed Jordan Searle as general manager for the brand in the U.S. and Canada.
He will oversee the strategy and performance of the beauty brand’s North American division in retail, wholesale distribution, marketing, e-commerce and activism.
“The Body Shop North America is entering an exciting new chapter,” said Searle. “Now more than ever, we’re leaning into our activist roots, championing our assortment of effective and ethical product that caters to every body, and driving positive impact through our aggressive sustainability agenda. I am energized to work alongside our talented team in North America to deliver the brand’s purpose-led mission while continuing to elevate our customer experience.”
Jordan Searle (Image: The Body Shop)
Founded in 1976 in Brighton, England, by Dame Anita Roddick, The Body Shop is a global beauty brand and a certified B Corporation with 177 stores across North America. There are 110 stores in Canada.
“We never say no to opening new stores but with 110 stores in Canada we are fairly well distributed. What we’re focusing our minds on right now are actually renewing our fleets with our new Workshop concept. So we’re on that journey,” said Searle. “This year we plan to re-fit the new concept to seven stores.
“Workshop is a new concept for us that we did launch back before the pandemic in Vancouver at the (CF) Pacific Centre. But unfortunately then with the pandemic kicking in stores were kind of closed and we didn’t get to see the impact of it until recently when we started opening more Workshop stores last year.
“The Workshop store is really an embodiment of our brand in many ways. Firstly a lot of the fixtures and fittings inside the store are made in a sustainable manner with sustainable materials and there’s a lot more experiential elements to the stores such as we have a big sink at the front of the store where customers are invited to actually experience the products.”
The Body Shop at Metropolis at Metrotown (Image: The Body Shop)
There’s more opportunities for the product to be displayed and experienced by people. Searle said the Workshop stores are more “tactile” than what’s in place at existing stores.
Searle said five stores in Canada have undergone the transformation – one at the Oshawa Centre, one in CF Market Mall in Calgary, one in CF Pacific Centre in Vancouver,, one at the Metropolis at Metrotown in Burnaby, BC, one in West Edmonton Mall and by the end of June one at the Yorkdale Shopping Centre in Toronto. MacArthurGlen Designer Outlet in Vancouver, Bramalea in Brampton, Orchard Park in Kelowna, the Willowbrook Shopping Centre in Langley, BC and the Guildford Town Centre in Surrey, BC are also on tap for the transformation.
Searle said the strategic plan is to refit five to eight stores per year.
“We’ll see how far we get on that journey,” he said. “The idea really is to completely rejuvenate our retail footprint within Canada.”
The Body Shop at CF Pacific Centre (Image: The Body Shop)
He said the brand has a very strong heritage in Canada and often Canadians think it’s a Canadian brand even though it hails from the UK.
“The real estate is actually very good. We have a lot of prime units and we operate in all the top malls and most of the best streets within the Canadian market. However, there hasn’t been a lot of investment into the fixtured environment over the last 10 years. It’s definitely due for an upgrade,” said Searle.
“But more than that we’ve had a lot of movement within our product line as well. A lot of it has been rejuvenated, reformulated. A lot of new products also introduced.”
Searle joined The Body Shop North America in 2021 as Vice President of Omnichannel, where he was responsible for omni-channel planning and strategy, and developing the framework to deliver sales, commercial incentives, and general merchandising. Prior to joining The Body Shop, Searle spent much of his career working with coveted lifestyle apparel brands developing sales distribution and commercial strategies. Additionally, he played a pivotal role in developing and expanding direct-to-consumer practices for ECCO and Canada Goose in North America and Europe.
“Jordan has had a successful introduction to the business since he joined us just over a year ago as Omnichannel Director,” said Caroline Le Roch, Managing Director for Europe and North America, The Body Shop, in a statement. “He brings great retail experience from his time at Canada Goose and ECCO where he led the introduction of its elevated retail concept. As we continue our focus on growth and delivering our changemaking mission, we’re confident his deeply collaborative leadership skills, affinity for our brand and expertise in retail, ecommerce, and marketing make him an excellent choice to lead the future of The Body Shop in North America.”
The Body Shop Toronto Pearson | Toronto Airport Shops (Image: Toronto Pearson)
The company said Searle will leverage his experience to help advance the brand’s omnichannel transformation with a strategic focus on retail and ecommerce. Among his priorities are realigning initiatives to accelerate growth; expanding the brand’s Workshop-concept retail locations in Canada; growing sales for the brand’s skincare category; driving customer acquisition; and accelerating The Body Shop’s social and environmental impact.
“I think there’s a necessity these days for brands to be able to storytell in a compelling way and have the right environment in and that’s what our Workshop store is all about, bringing that sort of feeling to the market and getting that connection with consumers,” he said.
The Body Shop operates about 3,000 retail locations in more than 70 countries. Along with Avon and Natura, The Body Shop is part of Natura &Co, a global, multi-channel and multi-brand cosmetics group that is committed to generating positive economic, social, and environmental impact.
More than half of Canadian consumers say they will abandon a store or online checkout if they can’t pay using their preferred methods, according to the annual Canada Retail Report 2023 by Adyen, a leading retail end-to-end, all-in-one payments solution for merchants across the globe.
Here are some key findings:
85 per cent of Canadian consumers are spending more time searching online or browsing stores for the best bargains;
21 per cent of Canadian consumers experienced payment fraud over the past year, losing an average of $265 CAD each;
71 per cent of Canadian retailers plan to expand into new markets this year;
50 per cent of Canadian retailers agree their business is in a better position due to investments in customers experience; and
33 per cent of Canadian retailers plan to invest in technology to improve the shopping experience.
Fabricland on Bloor (Image: Dustin Fuhs)
“Change is always accompanied by opportunity. As uncertainty becomes more palpable in the current economic climate, Canadian retailers’ ambitions are shifting to cutting costs and protecting their bottom line. They’ll need to invest in technology that will help them connect the dots and strengthen their business in the long run,” said Sander Meijers, Adyen’s country manager for Canada.
Sander Meijers
“In this report, we’ve collected insights into business strategies adopted by retailers across the globe and compared with Canada. Trends show that retailers are focused on optimizing loyalty programs, increasing efficiency, diversification, and looking for effective strategies to prevent fraud.
“The biggest takeaway? Connecting payments to other parts of the business will open up a realm of possibilities. And tech-first solutions will bring much- needed agility to big businesses by giving teams the time and resources to create better shopper experiences. What investments retailers make in technology today, will open up new opportunities tomorrow.”
Meijers said retailers have to unify their operations to be able to give consumers a better experience.
“Only one third of the Canadian retailers have actually done this but half of them are thinking about doing it or are starting to do it,” he added. “More than half are looking at it but only a quarter have done it correctly. It’s a huge opportunity for the Canadian retailers to start investing in if they want to be able to be successful in the long run because what anything taught us whether it’s inflation or the pandemic is you need to be able to offer a shopper a consumer experience that is very much unified online and in-store.”
In 2023, Canadian shoppers are taking their time and making more thoughtful purchases, said the report.
“With the cost of living rising and budgets tightening, people are searching for options that give them the most bang for their buck. This means smart shopping, budget-friendly prices and convenience are at the top of the list for the majority of Canadians,” it said.
“As the Canadian economy faces uncertainty and high inflation, 63 per cent of Canadian shoppers want to see more personalized discounting at retailers they shop with most. Retailers that provide attractive deals and personalized offers have the best chance of retaining customers and gaining new ones. However, half of Canadian retailers (48 per cent) say it’s harder to categorize customers by their needs because each wants a truly personalized experience.
“Since 40 per cent of Canadian consumers prefer retailers who remember their preferences to create a more tailored shopping experience, the retailers that can solve that knowledge gap will get a boost on the competition.”
Michaels on John Street in Toronto (Image: Dustin Fuhs)
The report said 33 per cent of Canadian retailers plan to invest in technology to improve the shopping experience.
“Unified commerce is the next frontier for Canadian retailers, where the demand for seamless and flexible omnichannel experiences is growing by the day,” said the report. “That’s reflected in the numbers. 63 per cent of consumers love the ease of purchasing an out-of-stock item in store and having it shipped to their home and 63 per cent are more loyal to retailers offering in-store web returns.
“Last year, Canadian retailers that connected their online and offline payments in one system saw a 14 per cent revenue boost. Retailers in Canada are paying attention. 47 per cent of retailers are starting to invest or are investing heavily in connecting online and in-person payments in one unified experience. 34 per cent are considering starting.
“Only 23 per cent of Canadian retailers are able to connect online transaction data with in-store transaction data. Coupled with the fact that currently 27 per cent of retailers are investing in payments data collection and analytics, there’s a lot of opportunity.”
Adyen said Canadian retailers are setting their sights on international markets, with many turning to ecommerce to break new ground.
“Our research found the US (58 per cent), UK (23 per cent), Australia (16 per cent), Mexico (15 per cent), and France (13 per cent) are the top destinations retailers are targeting,” explained the report. “Global ecommerce customers are primarily concerned with cost and convenience: the two defining factors that sway their purchasing decisions.”
Doordash x PC Express (Image: Dustin Fuhs)
When it comes to payments, 30 per cent of Canadian online shoppers said they would only buy products from abroad if the delivery charges were reasonable. 32 per cent would avoid it altogether if they had to incur customs charges in addition to the delivery fees, said the report.
“Canadian consumers are looking for flexibility when it comes to payment methods online. 22 per cent would only shop on websites in other countries if they can use their usual payment methods. Another 22 per cent would only do so if the retailers automatically converted prices to their local currency,” it said.
“This highlights the importance of offering a variety of payment options to meet the needs and preferences of Canadian consumers. By providing more payment flexibility, online retailers can keep up with evolving consumer demands and ultimately increase customer satisfaction and loyalty.”
Adyen also found that nearly one in three Canadian retailers say fraud and chargebacks are a significant cost to their business.
“As the retail industry continues to see accelerated digital transformation, shopping experiences are becoming more diversified and innovative. Unfortunately, this means fraudulent activity is becoming more sophisticated as well. Over the last year, 30 per cent of Canadian retailers experienced increased payment fraud attempts,” added the report.
“This is proving costly to both retailers and shoppers. 32 per cent of Canadian retailers suffered significant losses from fraudulent transactions and chargebacks. And one in five Canadian shoppers experienced payment fraud over the past year, losing an average of $265 CAD each.
As soaring prices force shoppers to reassess their spending habits, they now face the added threat of cybercrime, which lowers their confidence when making purchases. More than half of Canadian consumers (59 per cent) find online shopping less attractive because of fraudsters.
“Now Canadian shoppers are taking steps to minimize fraud risks themselves. More than a third (36 per cent) look at a website’s URL to ensure it doesn’t look suspicious before making a purchase, and 30 per cent don’t let their computer or mobile device remember their payment details, because they’re worried about fraud.”
There is a trend in retail that is quietly gaining momentum.
Savvy retailers are taking playbooks from Big Tech and Banks and adopting global offshore workforces to improve their talent base and manage costs.
I’d officially like to call it ‘Global Sourcing 2.0.’
In the wake of global competition and the need to manage increasing costs in the face of a recession, retail leaders who balk at the idea of managing teams in countries like India and the Philippines may find themselves sharing the same fate as their predecessors in the 1970s-80s who balked at the idea of moving production offshore to countries like China and Mexico—going out of business.
Fast forward to 2023, it’s common, if not a requirement to be competitive, for retailers and manufacturers to manage the production of goods in offshore factories, such as those in China, Mexico, and other developing nations.
But, white-collar jobs have predominantly remained in North America. This is now changing…
Today, there are thousands of North American companies outsourcing technology, finance, merchandising, operations, and e-commerce functions to India, and it’s growing fast. Last year alone, both Neiman Marcus and Lululemon opened global capability centers in India to help achieve their technology, e-commerce, and merchandising goals.
Here is a quick snapshot of the big ones over the last decade:
Source: MS2 Retail Advisory Inc.
So what’s driving this movement? Old stereotypical perceptions of low-quality Indian call centers are now replaced with world-class global technology centers like Bangalore – India’s Silicon Valley. Cities like Bangalore offer retailers skilled tech labor that is plentiful and affordable. This allows retailers like Lululemon to “tap into India’s tech talent to support digital transformation, improve omnichannel capabilities, and develop roadmaps for more advanced technologies like AI and cognitive competencies.”[1]
Lululemon India (Services) Private Limited Corporate Office. Source Google Maps, accessed 5/24/2023
But it goes beyond technology. Given the low cost of well-educated, skilled labor, back-office roles in merchandising, e-commerce, finance, and operations are quickly moving offshore. In today’s world, where there is resistance to return to the office and increasing labor wages dominate, it’s an easy decision to move roles that can be done remotely offshore, where average labor savings are generally over 50%. Due to the forced Covid-19 remote work policies that retailers adopted, they have already had three years of practice managing teams and projects remotely. Now, whether the employee is working remotely down the street or on another continent, it’s a moot point.
So is this the end of white collar jobs in North America? No, not really…
In the 1970s when production moved offshore, successful manufacturers shifted their focus from managing production lines to strategic activities that created real value by improving offerings through design, product curation, and customer experience. Focusing on design and customer experience while achieving low-cost production proved to be a winning formula.
In our post-Covid economy, retailers will again shift the mix of local versus offshore. With the proliferation of e-commerce and third-party marketplaces, managing technology and the transactional workload that comes with it is a massive burden for a retail head office. However, product margins and customer wallets have remained flat or decreased, putting enormous pressure on profitability as retailers struggle to manage these new work activities.
It now only makes sense to keep critical strategic roles in North America, moving transactional, technology and operations roles to remote global centers.
Large multinational retailers are relying on partnership with large consulting companies like Wipro, Tata Consultancy, Infosys and ANSR to build out their remote capabilities campuses. According to ANSR website they work to “enable companies to build distributed teams in support of workforce transformation, building strategic capacity and onboarding global enterprise talent. Through a flexible, ‘no-capex’, ‘pay-as-you-grow’ subscription based engagement mode”[2]. A compelling offer in today’s depressed economic climate where technology is at a premium.
Small to mid-size retailers are joining the trend as well. Working with small to mid-size retailers & DTCs, consultancies like MS2 Retail Advisory has been getting high interest from executives looking leverage global talent to replace open vacancies. Its not just call center and data entry roles that are being offshored. As head office teams are still working under hybrid or remote environments more senior levels roles and all areas of merchandising, ecommerce, supply chain and finance are on the table.
Even retailers like Tesco are finding new revenue opportunities helping other retailers build out global centers. As one of the first pioneers into India (2004), recently Tesco’s Global Business Services (GBS) unit announced plans to enter the business-to-business (B2B) market by helping other retailers across geographies set up capability centers in India.[3]
So once again, global barriers are falling, and the world is becoming ever smaller. As history has shown us, those who have embraced change and adapted their business models to suit new realities in their environment usually live to fight another day. While the goal is not to adopt change for the sake of change, but to reevaluate one’s business and cost structure to ensure that they are using every possible minute and dollar to provide excellent value to their end customer. Leveraging global teams and offshoring surely won’t guarantee success, but it will give resource-strained retail head offices some breathing room and redirect time, energy, and money to focus on what is important to their customer.
[1] Phadnis, Shilpa. 2021. Canada’s Lululemon Athletica opens tech Centre in Bengaluru. The Times India. Accessed 5/24/2023. https://timesofindia.indiatimes.com/city/bengaluru/canadas-lululemon-opens-tech-centre-in-bengaluru/articleshow/82298525.cms
[2] ANSR. 2023. About ANSR. ANSR Website. Accessed 5/24/2023. www.ansr.com
[3] Sureban, Haripriya. 2023. Tesco’s India unit plans to setup capability centres for other retailers. The Hindu Business Line. Accessed 5/24/2023. https://www.thehindubusinessline.com/companies/tescos-india-unit-plans-to-setup-capability-centres-for-other-retailers/article66800214.ece
Rack Attack, a leading retailer of car racks, bike racks, rooftop tents, overlanding, and other outdoor gear, continues to expand its footprint in Canada with the recent openings of three new stores in Kitchener, London and Winnipeg as well as acquiring two new stores in Calgary, previously owned by Racks Unlimited.
It’s part of the company’s plans to aggressively grow to more locations throughout the country and the United States.
The brand currently has 47 stores combined in both countries.
Rack Attack in Winnipeg (Image: Rack Attack)Rack Attack in Kitchener, Ontario (Image: Rack Attack)
Rack Attack began with one store in Vancouver in 1996.
Alexander Welbers
Alexander Welbers, CEO of Rack Attack, said the company’s focus is to support customers in making the best gear choices for their outdoor adventures.
“From easy base racks to very complicated vehicle modifications or vehicle rigging to make them off road and overland ready,” he said.
“We really accelerated our expansion over the last four years and we will open our 47th store in June (just outside of Philadelphia).”
Image: Rack Attack
Image: Rack Attack
The Kitchener, London and Winnipeg stores opened over the last three months.
“We’re coming out of a really intense growth expansion period since the beginning of 2022. We opened 26 stores since the beginning of 2022,” said Welbers. “We are really committed to growing the Canadian base and the U.S. base further. We have plans for more stores towards the end of this year and next year and beyond.
“On the Canadian side, we have 14 stores to date in BC, Ontario and Alberta. And we’re looking to further expand especially in the territories of BC, Alberta, Saskatchewan, Ontario and eventually Quebec. It’s hard to give you a number. We’ve opened three stores since the beginning of this year in Canada and we’re looking for roughly the same amount every year. Three to five stores to add to the Canadian market. There’s still some significant space that we’re not in now and we’re looking to find the right locations that are convenient for our communities to come to.
“When you see the new locations that we opened in Kitchener, London and Winnipeg, they’re in very good retail areas where people are familiar to go to . . . We need to find the location that has the right size for us but also allows some drive in bays, because we do all the service and vehicle modifications in our stores. We install everything we sell. That requires special retail locations where we can have vehicles in the stores.”
Rack Attack in London, Ontario (Image: Rack Attack)Rack Attack Toronto (116 Laird Drive) Image: Rack Attack
Welbers said the company is in the process of re-branding the Calgary stores it acquired a few months ago.
“It’s a great market for us. We’re really excited to be in the Calgary market finally,” he said.
The company opened in January 2022 Canada’s first location for a branded store for Swedish-based Thule, a global designer and manufacturer of roof racks and carriers, and is located in the Park Royal Shopping Centre in Vancouver. It is the second branded Thule store in North America with the first one in Denver, Colorado, which opened in June.
“We are still looking to expand further our Thule store base. Also in Canada. We’re looking for maybe one more location towards the end of this year but we haven’t really committed to a lease yet,” said Welbers.
“That’s one of the new store openings that we’re looking to as well. The three to five (new) stores per year in Canada could include one Thule store roughly every year. So we’re looking for locations there too. The Thule stores are really in high traffic areas like you see the Park Royal store. A lot of foot traffic.
“The Rack Attack stores are in good retail destinations but they are bigger and they need drive-in bays to service and install and they need to be bigger to show all of the products that we have there. So the Rack Attack store is four to five times bigger than a Thule store.”
